Policies on the Production of Bioethanol

July 1, 2009

SRA ORDER NO. 14

 

WHEREAS, Department Circular No. DC 2007-05-0006 of the Department of Energy (DOE) providing for the Rules and Regulations Implementing (IRR) Republic Act No. 9367, otherwise known as the Biofuels Act of 2006 mandates in Rule IV, Section 16 thereof: TAcSaC

"Section 16. The Sugar Regulatory Administration (SRA). —

Pursuant to its mandate under Executive Order No. 18 and the Act, the SRA shall:

a) At all times ensure that the supply of sugar is sufficient to meet the domestic demand and that the price of sugar is stable;

b) Together with the DA, PCA and other DA-attached agencies, develop and implement policies supporting the National Biofuels Program and submit the same to the Secretary of the Department of Agriculture for consideration".

WHEREAS, Section 3 of E.O. No. 18 empowers SRA to issue permits and licenses and collect the corresponding fees and levies on the processing and manufacture of sugar and its by-products and other products derived from sugarcane and sugar;

NOW THEREFORE, under and by virtue of the authority vested in the Sugar Regulatory Administration (SRA), the following is hereby ordered.

SECTION 1. Certification of Existing Sugarcane Plantations as Feedstock Areas and Plant Site for Bioethanol Production. —

All bioethanol producers shall be required to secure certifications from SRA for the utilization of existing sugarcane plantations into bioethanol feedstock areas. On the other hand, bioethanol feedstock producers shall not be required to secure certification from SRA.

SECTION 2. Registration of Bioethanol/Producers/Manufacturers. —

All bioethanol fuel producers/manufacturers using sugarcane, sugar, sugar syrups, molasses and other products derived from sugarcane and sugar as feedstocks for bioethanol fuel production shall register with SRA prior to commercial operation. Registration shall be subject to renewal every crop year.

Producers of bioethanol, other than bioethanol fuel, using sugarcane, sugar, sugar syrups and other products derived from sugarcane and sugar, except molasses, as feedstocks shall be required to register with SRA. TSAHIa

SECTION 3. Registration of Bioethanol Feedstock Traders/Brokers. —

All traders or brokers engaged in buying and selling bioethanol feedstocks such as molasses, sugarcane, sugar, sugar syrups and other products derived from sugarcane and sugar shall register with SRA. Registration shall be subject to renewal every crop year.

SECTION 4. Assignment of SRA Regulation Officers (SRO) in Bioethanol Production Facilities. —

An SRA Regulation Officer (SRO) shall be assigned by SRA in every bioethanol production facility using sugarcane, sugar, sugar syrups and other products derived from sugarcane and sugar, except molasses, as feedstocks to monitor bioethanol production, collect the necessary liens and provide other regulatory, advisory and facilitation services. No SRO shall be assigned in bioethanol production facilities using molasses as feedstock.

SECTION 5. Collection of Monitoring Fee and Bioethanol Research, Development & Extension (BRDE) Lien. —

Beginning crop year 2009-2010, a monitoring lien of five (5) centavos and a Bioethanol Research, Development & Extension (BRDE) lien of ten (10) centavos per liter of bioethanol produced and sold shall be collected by SRA from all bioethanol producers using sugarcane, sugar, sugar syrups and other products from sugarcane and sugar, except molasses, as feedstocks for bioethanol manufacture. No lien shall be collected from bioethanol producers using molasses as feedstock.

SECTION 6. Importation of Feedstocks for Bioethanol Production. —

Importation of feedstocks used in the manufacture of bioethanol such as molasses, sugar, sugarcane, sugar syrups and other products derived from sugarcane and sugar shall be allowed subject to SRA regulation.

SECTION 7. Effectivity. —

This order takes effect immediately.

BY AUTHORITY OF THE SUGAR BOARD

(SGD.) RAFAEL L. COSCOLLUELAAdministrator